Revision Flashcards
List some of our USP’s
- 5* TrustPilot score
- Independent, whole of market broker. We can match the rates of any other broker
- New build & scheme specialists
- Largest broker for new builds in the UK
How do you work out LTV?
Loan divided by valuation x 100
For SDLT, when is it higher rate applied?
For any first time buyer buying a buy to let, SD is charged at higher rate. Any investment property is charged at higher rate.
Purchasing any additional property is charged at higher rate
Describe HTB scheme
Gov loan of 20% (40% in London) for first time buyers only on new builds only.
Generally will only need 5% deposit.
Price caps are dependent on regional location
Interest free for 5 years apart from £1 a month fee to keep account active.
After year 6 interest is charged at 1.75%
Can repay loan whenever you want in 2 lump sums, or 4 in London.
You have until the term of the mortgage to repay the loan. Repayment will be based on 20% of prop value at the time of repayment, so the amount you repay might increase but so has your equity in the property.
If a partner will live with you in the prop then they have to go on the HTB application
Our HTB calculator
Bonus & commission (annual gross)
How should we qualify
Self employed
B&C - work out average over 12 months if it differs month to month using last 3 months total commission / 3 months x 12
Qualify - on basic income because if we can qualify them on that, we know it is affordable with bonus/ commission
SE - If person is SE we can use their latest years’ accounts
Forces HTB
Borrow 50% of salary or £25k whichever is lower, for their deposit
Loan is interest free
Can be first or next time buyers
Repayments are made via salary deductions
Can use forces HTB along with normal HTB
Treat the repayment as a loan. But on the HTB calculator we would put it in the same area as Pension contributions
Shared ownership
Cust buys share of property, usually minimum of 25% and pays rent on the rest to the HA. Maximum initial share to buy is 75%
People only need 5% deposit of the share they are purchasing
Can staircase in 5% increments but have to fully staircase to 100% in 3 instances
Can be new builds or second hand homes and is open to first & next time buyers
Rent is usually 2.75% of share the HA owns
When should you check LTV?
First!
How do you work out the full PP for shared ownership?
Value of share they are buying divided by the percentage of the share they are buying
How do you work out how much equity a customer can release (LTB)?
Value of existing property x 75%
Then minus the existing mortgage balance = amount they can release and still leave 75% equity in the property.
Can do it at 80% but would need to use lender happy with 80% LTV for let to buy
What questions do we ask to someone who is self employed with only 1 years’ history?
What were you doing previously?
For Ltd companies & partnerships, what do we ask the customer?
What percentage of the business do you own?
For a partnership, we would also ask what their net profit is for the % share they own
What do we ask for sole traders’ income?
Your net profits
SA302’s
For ltd companies, what do we ask for income?
What have you taken as salary and what are your dividends?
Ask if they have an accountant
What docs would we ask for to show income for ltd company, partnership & sole trader?
Ltd comp - Company accounts
Sole trader & partnership - SA302’s
What history (document-wise) do we need from someone working under an umbrella company?
3 months’ payslips/ invoices from the umbrella company. If income varies, majority of lenders will take an average. Some lenders will treat as SE if tax & NI are deducted at source
What do we ask someone who works under an umbrella company?
Is tax & NI deducted on your payslip or do you pay this yourself?
How long have you been working through the umbrella company?
Has this been continuous?
Do you own part of the umbrella company?
What evidence do you have for income? Do you receive payslips and if so, are these weekly or monthly?
On your payslip does it show basic income or does it show expenses or holiday?
What do we ask day rate contractors?
What is your occupation/ what industry do you work in?
How long have you held continuous employment in this industry? How much of that has been on a contracting basis?
When did your current contract start and when is it due to end? If less that 12 months, what is previous history?
What is your day rate or hourly rate?
How many days per week are you contracted?
What do we ask CIS (construction industry scheme) workers?
Are you a sub-contractor working through CIS scheme? (ask this of anyone working in construction industry)
How long have you worked in the industry and how long have you been a sub-contractor? (If less that 2 years, what were you doing previously?)
Have there been any gaps in your income in the pas 12 months? (i.e. has there been a payslip for each of the last 52 weeks or 12 months?)
Is tax deducted on your payslip/ invoice/ voucher or do you pay this yourself?
Are you paid weekly or monthly?
What do we ask of people with VISAs?
When do you come to the UK?
What type of VISA are you on?
When did that start and when does it expire?
If they have partner, what type of VISA are they on (can sometimes be a dependent VISA).
When did they start working in the UK?
What process do we follow for cash buyers?
We do not need to read the entire of the GDPR script, just: all details provided today are covered under the GDPR & the sentence about info stored securely on system & that we are required to share some of it with the housebuilder
Take their name & number, we don’t need anything else
Confirm the purchase price of the new property and ask where the money is coming from. We need to know they have the amount to cover the cash price in full (note this on file)
Are they selling a prop (are they under offer? wanting to do a PX or assisted move? Have they completed on a sale?)
If it is coming from savings, is it available in a UK account?
If it’s coming from inheritance, how soon will they have access to the funds?
Ask if they have budgeted for SDLT & legal fees (note on file)
Feed back to site with ref number & confirm they are a cash buyer
Close file using Contact Close - Cash Buyer
Who would we consider for lending with nurse bank work?
Halifax
What questions should we ask if someone with nurse bank work?
How long have you been doing it?
Are there any gaps in the work?
What frequency are you paid? (Depending on lender we would need X amount of payslips to show this).
Who can we place NQT customers on such as teachers who are in the first year of their fixed contract?
NatWest
Teachers
